Recording inventory transactions using the perpetual method: intermittent sales and purchases
The following inventory transactions apply to Willow Company for 2012.
Jan. 1 | Purchased | 250 units @ $40 |
Apr. 1 | Sold | 125 units @ $70 |
Aug. 1 | Purchased | 400 units @ $44 |
Dec. 1 | Sold | 500 units @ $76 |
The beginning inventory consisted of 175 units at $34 per unit. All transactions are cash transactions.
Required
a. Record these transactions in general journal format assuming Willow uses the FIFO cost flow assumption and keeps perpetual records.
b. Compute cost of goods sold for 2012.
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